Uncertain market conditions, the COP28 agreement and the US’s recent decision to halt LNG exports signal that the lifespan of some of these assets may be shorter than assumed.
It may be time for infra investors to kick their natural gas habit
Uncertain market conditions, the COP28 agreement and the US’s recent decision to halt LNG exports signal that the lifespan of some of these assets may be shorter than assumed.
Natural gas has long been a staple of infrastructure investors’ portfolios and it's no secret that investors and big corporations alike are bullish on natural gas. Just look at the numbers: in 2023, investment in natural gas totalled $288 billion, up 10.8 percent from 2022 and 33.9 percent from 2021, according to data from BloombergNEF’s Energy Transition Investment Trends 2024.
Such investors have long pocketed solid returns from investments like these. But straight power demand numbers no longer justify investors’ bullishness. As explored by Infrastructure Investor in March 2022
, not all natural gas assets will have the multi-decade lifespan once assumed...
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